Correlation Between SILICON LABORATOR and PENN NATL
Can any of the company-specific risk be diversified away by investing in both SILICON LABORATOR and PENN NATL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SILICON LABORATOR and PENN NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SILICON LABORATOR and PENN NATL GAMING, you can compare the effects of market volatilities on SILICON LABORATOR and PENN NATL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SILICON LABORATOR with a short position of PENN NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SILICON LABORATOR and PENN NATL.
Diversification Opportunities for SILICON LABORATOR and PENN NATL
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SILICON and PENN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SILICON LABORATOR and PENN NATL GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN NATL GAMING and SILICON LABORATOR is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SILICON LABORATOR are associated (or correlated) with PENN NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN NATL GAMING has no effect on the direction of SILICON LABORATOR i.e., SILICON LABORATOR and PENN NATL go up and down completely randomly.
Pair Corralation between SILICON LABORATOR and PENN NATL
Assuming the 90 days trading horizon SILICON LABORATOR is expected to generate 0.71 times more return on investment than PENN NATL. However, SILICON LABORATOR is 1.42 times less risky than PENN NATL. It trades about 0.1 of its potential returns per unit of risk. PENN NATL GAMING is currently generating about -0.02 per unit of risk. If you would invest 12,400 in SILICON LABORATOR on October 17, 2024 and sell it today you would earn a total of 500.00 from holding SILICON LABORATOR or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SILICON LABORATOR vs. PENN NATL GAMING
Performance |
| Timeline |
| SILICON LABORATOR |
| PENN NATL GAMING |
SILICON LABORATOR and PENN NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SILICON LABORATOR and PENN NATL
The main advantage of trading using opposite SILICON LABORATOR and PENN NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SILICON LABORATOR position performs unexpectedly, PENN NATL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PENN NATL will offset losses from the drop in PENN NATL's long position.| SILICON LABORATOR vs. JLF INVESTMENT | SILICON LABORATOR vs. PennantPark Investment | SILICON LABORATOR vs. HK Electric Investments | SILICON LABORATOR vs. Scottish Mortgage Investment |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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